COMMERCIAL INSURANCE SMALL TO MEDIUM BUSINESS. SMALL TO MEDIUM business OVERVIEW

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1 COMMERCIAL INSURANCE SMALL TO MEDIUM BUSINESS we re big on your business SMALL TO MEDIUM business OVERVIEW

2 Given our expertise in commercial insurance, you can count on RSA to meet the needs of your SMALL TO MEDIUM Business clients, and enable your business to grow. As a broker, your success is our success.

3 WE RE BIG ON your BUSINESS WE KNOW THAT YOU ARE, TOO At RSA, we re all for small to medium business. Like you, we know that they are the backbone of Canada s economy. We have an in-depth understanding of entrepreneurs and provide insurance solutions that allow these industrious individuals to do what they do best: expand and grow. We ve built our Commercial Insurance package policy to offer entrepreneurs the best protection at the best rates. Additional coverage and enhancements are available within package at no additional premium. And to ensure our customers receive the fullest offering, we have increased numerous coverage limits, including Tenant Legal Liability, Medical Payments, Computer Hardware & Breakdown, and Contents Extensions. Our leading package is designed for a broad range of trades and businesses, whether they have single or multiple locations.

4 BROADENED CAPACITY TO WRITE LARGER ACCOUNTS BY CLARIFYING & MODIFYING OUR RISK ELIGIBILITY CRITERIA We write 60% of Commercial Insurance Trades (by industry SIC code), which includes 85% of all Canadian small to medium business No minimum premium Revenue up to $5,000,000 for most trades * Retail revenue up to $10,000,000* Up to 10 locations* Building ownership risks of 15 stories or less * Favorable loss history Umbrella coverage is subject to underlying policies written by RSA (does not include auto) *for risks outside of this, underwriting referral is required. 2

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6 Commercial Insurance PACKAGE HIGHLIGHTS NEW BROAD COVERS AUTOMATICALLY INCLUDED Our comprehensive coverage is built for Canadian entrepreneurs and covers general liability, property, business income, crime, in-land marine and equipment breakdown. Some of the highlights include: Computer protection: Includes Computer Hardware, Data, Transit and Breakdown - providing coverage for electronic hardware and media, data reproduction costs and extra expense relating to a loss of hardware. Off-premises Power Interruption: Covers loss of business income or extra expense incurred as a consequence of a service interruption at a local utility, caused by an Insured Peril. Mobile Personal Computing Devices: Extends the coverage provided by the computer form to mobile personal computing devices at a non-owned location, including but not limited to laptops, notebooks and personal digital assistants (PDA), to non owned locations. Identity Theft Expense: Provides coverage for reasonable expenses paid to compensate a customer who has had their identity stolen by robbery or burglary at the insured s premises. Reward: Reimburses the insured for reward money paid by them for information leading to conviction of a perpetrator of arson. Sign Floater: Provides broad form coverage for exterior signs which are owned by the insured or for which they are responsible. Outbreak Extra Expense Extension: Provides coverage for the additional expense to continue business following an order to close by a public health authority, as a result of a human communicable disease that the insured is required by law to report to the health authority. Stock Spoilage: Provides coverage for spoilage to stock due to dampness or dryness of atmosphere or change of temperature, caused by an Insured Peril and includes off premises power interruption. Equipment Breakdown: Protection against physical damage and loss of business income resulting from breakdown of equipment caused by sudden and accidental failure. Business income: Covers loss of income and the extra expense incurred to resume business, resulting from an interruption to the business by an Insured Peril. Elevator Collision Extension: Coverage for loss or damage by accidental collision to elevator cars not owned by the insured. Profit Actual Loss Sustained (ALS): Business income coverage for the actual loss sustained due to an interruption to the business by an insured peril, subject to a maximum limit and indemnity period, up to the point that income reaches the level it would have been had no loss occurred. 4

7 COMPETITIVE ADVANTAGE We ve made significant enhancements to our standard product offering; making RSA highly competitive in the market. Just some of the stand-out coverage and limits to note are: PROPERTY COVERAGE HIGHLIGHTS Computer Protection (Small Business) - $50,000 Computer Breakdown - $50,000 Fine Arts - $25,000 (Maximum limit per item $2,500) Stock Spoilage including off premises power interruption - $10,000 Mobile Personal Computing Devices - $2,500 Deferred Payment Extension - $10,000 Personal Property of Officers and Employees - $25,000 per occurrence ($1,000 per person) Reward - $5,000 Condominium Betterments - $25,000 (excluding Condominium & Realty Packages) BUSINESS INTERRUPTION HIGHLIGHTS Extra Expense - $50,000 Outbreak Extra Expense Extension - $1,000/day for 20 days Off Premises Power Interruption (48 hr waiting period) - $10,000 Interruption by Civil Authority (30 days) - included Contingent Business Interruption - $5,000 Fines for Damages for Breach of Contract Extension - $25,000 CRIME & FIDELITY COVERAGE HIGHLIGHTS Loss Inside/Outside - $10,000 Damage to Building by Burglary or Robbery - $5,000 Employee Dishonesty Form A - $5,000 Identity Theft Expense - $10,000 Sales Representative Samples - $50,000 (excluding Condominium Package) Trustee Fees - $50,000 included in Condominium Package 5

8 OUR Commercial Insurance PACKAGE OVERVIEW We have an in-depth understanding of the risk profile of small to medium entrepreneurs from the micro right up to medium-sized businesses, and the coverage they will require during the lifecycle of their business. Our new package offering has been enhanced to make it highly competitive in the market. Our complete product combines coverage a Canadian entrepreneur would require to protect their business assets. Our core product is built to cater to the needs of the Canadian entrepreneur and is well suited to Retail and Business and Professional Services. We provide an outline of the core cover included below. However, we also recognize that more specialized trades require more tailored coverage so we provide specially designed bolt-on sections to our core offer that caters to these risks. NEW COVER INCREASED LIMIT WHAT S INCLUDED LIMIT COVERED LIABILITY SECTION Commercial General Liability (Per Occurrence) Select Limit ($) Tenants Legal Liability (Any one premises) $300,000 Medical Payments (Any one person) $10,000 Personal and Advertising Injury Liability CGL limit (Any one person or organization) Employee Benefits E&O Covers the amount the insured would have to pay a current or former employee due to an error or omission in the administration of benefits. Employers Liability Removes the employer s liability exclusion in the base commercial general liability wording for office employees. $1,000,000 $1,000,000 Voluntary Compensation $100 weekly indemnity Elevator Collision Extension $10,000 Non-Owned Automobile Covers the insured s legal liability for the use or operation of vehicles not owned by them, but used in the course of their business. Coverage is contingent on excess automobile over any other collectible automobile insurance (e.g. owners or drivers form). $1,000,000 SEF 96 - Contractual Liability Endorsement SEF 94 - Legal Liability for Damage to Hired Automobiles $50,000 6

9 NEW COVER INCREASED LIMIT WHAT S INCLUDED LIMIT COVERED property SECTION Building Select Limit ($) Select Cover Contents Select Limit ($) Select Cover Office Contents Tenants Improvement $25,000 Covers office furniture, fixtures, equipment, supplies, tenants improvements and other contents typically found in an office. Accounts Receivable $50,000 In the event that the insured s accounting records are lost or destroyed, this covers their customers payments. Also provides cover for extra expenses to collect outstanding payment and to re-establish the accounting records, including interest on loans. Valuable Papers $50,000 Computer Protection Small Business Includes Computer Hardware, Data, Transit and Breakdown - providing coverage for electronic hardware and media, data reproduction costs and extra expense relating to a loss of hardware. $50,000 Computer Transit $25,000 Computer Breakdown $50,000 Computer Extra Expense $7,500 Co mputer Data $7,500 Commercial Condominium (Betterments) Extension Covers any betterments belonging to the insured which are permanently fixed to the condominium unit which the insured owns, where coverage is not provided by (or is in excess to) the building insurance carried by the condominium corporation $25,000 Automatic Fire Suppression System $25,000 Fire Department Service Charges $25,000 7

10 OUR Commercial Insurance PACKAGE OVERVIEW NEW COVER INCREASED LIMIT WHAT S INCLUDED LIMIT COVERED Leasehold Interest Provides coverage for the additional lease expenses resulting from having to rent another premises to continue business, due to a loss at the insured premises. Cover is provided for the difference in the existing monthly rent and the rent required at a replacing location which is similar in size, condition and location. $25,000 Professional Fees $25,000 Blanket Glass $10,000 Personal Property of Officers & Employees $1,000 per person Deferred Payment Extension Provides coverage for merchandise sold under a deferred payment or installment program while at a third party location or in transit. Fine Arts (maximum limit per item $2,500) Provides blanket coverage, on a valued basis, for the insured s personal collection of paintings, etchings, pictures, tapestries, and other works of art at the insured location. Also provides coverage for incidental transit and off-premises exhibitions. Mobile Personal Computing Devices Extends cover provided by the computer form to mobile personal computing devices at a non-owned location, including but not limited to laptops, notebooks and personal digital assistants (PDA), to nonowned locations. Reward Reimburses the insured for reward money paid by them for information leading to conviction of a perpetrator of arson. Stock Spoilage (including off premises power interruption) Provides coverage for spoilage to stock due to dampness or dryness of atmosphere or change of temperature, caused by an Insured Peril. /$25,000 per occurrence $10,000 $25,000 $2,500 $5,000 $10,000 8

11 NEW COVER INCREASED LIMIT WHAT S INCLUDED LIMIT COVERED Sign $25,000 Sign Floater - Provides broad form coverage for exterior signs which are owned by the insured or for which they are responsible. By-laws Inflation Shield Replacement Cost (excluding Stock) Extension Terrorism Exclusion Peak Season Provides cover for predictable seasonal fluctuations of stock by allowing an automatic increase in stock of up to 25% of the stock limit on the policy. Stated Amount The stated amount clause replaces the percentage coinsurance clause with a stated dollar amount provided by the insured in a statement of values. APPLICABLE TO EACH LOCATION Newly Acquired Building & Contents Provides 30 days cover for buildings and contents recently acquired by the insured but not yet scheduled on the policy. Contents at Non-Owned Location Provides coverage for contents at a location not owned, rented or controlled by the insured. Debris Removal $1,000,000 $50,000 Transit $25,000 Sales Representative Samples Provides coverage for stock and equipment in the custody of a sales representative of the insured. Includes coverage while in transit. $50,000 Jewellery, Watches & Furs $1,000 Building Damage Due to Theft $2,500 9

12 OUR Commercial Insurance PACKAGE OVERVIEW NEW COVER INCREASED LIMIT WHAT S INCLUDED LIMIT COVERED Parcel Post $1,000 Growing Plants, Trees, Shrubs or Flowers $20,000 (Maximum $1,000 any one item in the open) Exhibition $25,000 Provides cover for property while away from the insured s premises at an exhibition site. Includes transit between the insured s premises and the exhibition site. Master Key $25,000 Provides coverage for the cost of replacing or re-adjusting locks following an insured loss to the master key that controls all the doors at the premises. Land & Water Pollution Clean Up $10,000 Provides cover for sudden and accidental pollution to land and water at the Insured s location caused by an Insured Peril. BUSINESS INCOME SECTION Extra Expense $50,000 Profit Actual Loss Sustained (ALS) Off-Premises Power interruption - 48 hr waiting period Covers loss of business income or extra expense incurred as a consequence of a service interruption at a local utility, caused by an Insured Peril. Interruption by Civil Authority (30 days) Contingent Business Interruption Provides loss of business income sustained by the insured due to a loss, caused by an Insured Peril, at a 3rd party location which either supplies or purchases from the insured. $10,000 $5,000 10

13 NEW COVER INCREASED LIMIT WHAT S INCLUDED LIMIT COVERED Outbreak Extra Expense Extension Provides coverage for the additional expense to continue business following an order to close by a public health authority, as a result of a human communicable disease that insured is required by law to report to the health authority. Fines for Damages for Breach of Contract Extension Covers fines or damages incurred by the insured for non-completion or late completion of a contract, due to an interruption in business caused by an Insured Peril. $1,000/day for 20 days $25,000 Additional Time Required for Rebuilding Extension Terrorism Exclusion Crime Section Loss Inside/Outside $10,000 Overnight coverage & in Custodians home $5,000 Medical Expenses Resulting from Robbery $5,000 Damage to Building by Burglary or Robbery $5,000 Fidelity Section Employee Dishonesty Form A The Employee Dishonesty Form A Bond provides coverage to an employer for loss due to any fraudulent or dishonest acts of its insured s employees. $5,000 Money Orders, Counterfeit Currency $5,000 Depositor s Forgery $5,000 Identity Theft Expense Provides coverage for reasonable expenses paid to compensate a customer who has had their identity stolen following a loss of securities by robbery or burglary at the insured s premises. $10,000 11

14 OUR Commercial Insurance PACKAGE OVERVIEW NEW COVER INCREASED LIMIT WHAT S INCLUDED LIMIT COVERED Inland Marine Section Tool floater ($500 maximum limit per item) $5,000 Replacement Cost is included for tools less than 3 years old. This coverage provides blanket actual cash value limits for small tools while away from the insured s premises. Terrorism Exclusion EQUIPMENT BREAKDOWN Section Limit of Liability $20,000,000 Property Damage/Business Interruption/Extra Expense/Service Property Limit ($) Select Cover Interruption Spoilage $25,000 Select Cover EBI Extensions: Expediting Expenses Professional Fees Ammonia Contamination $100,000 Water Damage $100,000 Hazardous Substances $100,000 Mould $50,000 Data & Media Coverage $25,000 Selling Price Brands & Labels Errors & Omissions $100,000 Interruption by Civil Authority Contingent Business Interruption/Extra Expense $100,000 By-laws Terrorism Exclusion 12

15 EXPANDED RISK APPETITE SO YOU CAN DO MORE BUSINESS With a risk appetite that has expanded to accommodate and cater to Canadian entrepreneurs, we are writing more small to medium businesses than ever before and winning with our brokers more often. We now write over 85% of Canadian small to medium business including business & professional services, manufacturing & processing businesses and construction & contracting risks. This broader, more generalist reach allows for greater portfolio and program opportunities enabling you to consolidate your Commercial Insurance business with one leading insurance carrier, simply and efficiently. AN ENHANCED OFFER FOR YOUR CLIENTS Entrepreneurs drive our economy through their many and varied businesses. At RSA we insure a wide range of industries, because our intimate knowledge of the challenges they face allows us to underwrite these risks. We understand the entrepreneur as a general group, along with the specific needs of start-up businesses and specialized trades whether hospitality or construction, manufacturing or wholesale, realty or condo. Our trade-specific product enhancements enable you to be confident your clients are properly protected with RSA. Our customers can rest assured, they have the specific unique covers required to protect their businesses as they expand and grow. 13

16 MEETING THE NEEDS OF ENTREPRENEURS BY UNDERSTANDING WHAT MAKES THEM UNIQUE For specific trades we have package offerings with these added benefits What s Included Limit AUTOMOBILE TRADE PACKAGE Garage Liability Extension Included Hoist Collision Extension $25,000 CONTRACTORS PACKAGE Broad Form Property Damage Included Broad Form Completed Operation Included Contractors Errors & Omission $25,000 Hoist Collision Extension $25,000 Rip & Tear Extension $10,000 Contractors Equipment Floater - $25,000 Replacement cost for items < 3 years old Installation Floater $25,000 Loss of Use Rental Reimbursement - Daily Limit of $1,000 $10,000 Aggregate MANUFACTURING AND WHOLESALE PACKAGE Product Withdrawal Expense Extension $25,000 Aggregate Hoist Collision Extension $25,000 Brands and Labels Extension $25,000 Production Machine Inclusion Included REALTY PACKAGE Gross Rentals Actual Loss Sustained Included (ALS) What s Included Limit RESIDENTIAL CONDOMINIUM PACKAGE Trustees Fees $50,000 Coverage Away from Premises $2,500 Growing Plants, Trees, Shrubs or Flowers Maximum $500 each HOSPITALITY PACKAGE Innkeepers Liability Extension ($1,000 per guest) $25,000 Occurrence BED & BREAKFAST (B&B) PACKAGE B&B Personal Liability Extension Included B&B Voluntary Payment for Damage $1,000 to Property Expense Extension Innkeepers Liability Extension ($1,000/guest) $25,000 Occurrence B&B Additional Buildings Extension 10% of Building Limit B&B Additional Living Expenses $25,000 Extension B&B Building & Contents (Broad Form) Included Amendment Coin Collection $1,000 Manuscripts and Stamp Collections $2,000 Personal Watercraft and Accessories $3,000 Garden Tractors and Accessories $10,000 B&B Replacement Cost Included (excluding Stock) Extension Land and Water Pollution Clean Up $25,000

17 NEW / START-UP BUSINESS PACKAGE Our Micro package is designed for new or start-up entrepreneurs with few or no employees, assets, and turnover. It covers the needs of the true small business owner looking for basic insurance coverage. We provide specific coverage for these businesses with maximum sales up to $50,000, who operate out of one location, with contents limits up to $100,000 and $1,000,000 liability. STANDALONE EQUIPMENT BREAKDOWN PACKAGE (EBI) Every business is in danger of having its work interrupted and its reputation damaged by breakdown of its critical equipment. Equipment Breakdown Insurance provides protection from loss of income and gets our customers businesses operating again as quickly as possible. Equipment Breakdown Insurance is offered as a coverage as part of our packages. However, the standalone package is available to a broader range of classes and includes Spoilage coverage up to $25,000. SOLAR PACKAGE (CURRENTLY AVAILABLE IN ONTARIO ONLY) Solar package is for MicroFIT, the name given to the OPA (Ontario Power Authority) contract between themselves and individuals choosing to generate and sell electricity to the grid. The generation of such electricity is from a renewable energy source that is wind, water, solar, radiation or agricultural biomass. This package provides protection for solar panel installation contractors with its specialized coverages. 15

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19 OUR FLEXIBLE PRICING APPROACH FOR OUR MOST COMPETITIVE RATE Fast, flexible and highly sophisticated - our new pricing model allows us to drive competitiveness in our target segments, and provide a timely response to market dynamics. Since our rates are based on the quality of risk and individual customer behaviors, the right price is always applied to the right risk. Geared at a sub-segment level the premium is accurate to the actual trade, not a wider grouping and for micro businesses, there are no minimum premiums. Our pricing sophistication and competitive intelligence means that you ll receive a competitive price from RSA, giving your clients the best value. OUR COMMERCIAL INSURANCE CUSTOMERS CAN TAKE ADVANTAGE OF FLEXIBLE PAYMENT OPTIONS DIRECT BILL Customers pay their entire premium with one pay by a variety of payment options CREDIT CARD PAYMENTS Customers select their preferred payment schedule Choose from monthly instalments or one pay Any amendments will automatically be refunded or charged on the credit card When payments are made with an AIR MILES credit card, the insured earns AIR MILES reward miles twice: on their credit card and with RSA * PREMIUM PAYMENT PLAN PPP The customer submits a void cheque and signs authorization for the company to withdraw payments monthly from their account AGENCY BILL The broker is responsible for collecting full payment from the customer 17

20 USE AIR MILES TO ATTRACT NEW CUSTOMERS AND GROW YOUR BOOK RSA is the only Commercial Insurance insurer in Canada to offer AIR MILES reward miles on policies. Customers can earn one reward mile for every $20 (including taxes) * on their policies. They earn again when they insure their home or car with RSA and they earn at least double the miles when they pay with any AIR MILES credit card. Over 40% of Collectors say they are willing to consider switching insurance providers to collect AIR MILES (research recently conducted by AIR MILES on behalf of RSA). The AIR MILES program rewards customers for their loyalty month after month, year after year. Unlike other rewards programs, AIR MILES reward miles never expire. AIR MILES offer provides additional opportunities for customer conversations. The AIR MILES brand can add value to your existing customer marketing and communications. USE AIR MILES TO IMPROVE CUSTOMER RETENTION Customers who registered with the AIR MILES program have shown better retention rates usually by around 10%. Overall, brokers who have leveraged AIR MILES in joint-marketing initiatives with RSA have shown higher than average premium growth and retention in their territory. 18

21 HASSLE FREE CLAIMS KEEPING BUSINESS ON TRACK Insurance is a promise to keep things running smoothly. When it comes to small to medium businesses, we re committed to keeping the lights on should something go wrong. We know that time is money for your customers. A delay on a claim can have a severe impact on a small to medium business and can even make the difference between staying in business or not. Knowing what s at stake for entrepreneurs from both a financial and emotional standpoint, our claims service consistently delivers beyond customer expectation. Our skilled team of claims professionals deliver our claims promise on every claim by keeping things moving at all times. With our National Claims Service Centre that is open 24/7, clients can rely on an expert claims response team, with initial contact by a claims professional no later than four business hours of notification of loss. $500 Service Guarantee If we do not return a call on a new claim within 6 business hours we will pay your client (excluding control adjusters and program accounts) $500 without question. Fast Track Quick settlement of property losses under $15,000 if criteria are met. The way we handle a claim is the most important part of our relationship with your clients. Our exceptional claims service is one of the key reasons for recommending RSA and for your existing clients to renew their policy with us. RSA s Hassle Free Claims Service Commitments 1. We commit to initial contact of the claimant within 4 business hours of notification of loss. 2. All messages received by the claims team by 3 PM will be returned same day. 3. We will keep you and your clients informed of key developments throughout the life of the claim. 4. We will issue your clients a cheque within 2 business days of a claims settlement. 5. We will inspect damage to your customer s small or medium business within 2 business days and vehicle inspection within 1 business day in urban areas and 3 business days in rural areas. 19

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23 EXPERT RISK SUPPORT FOR ADDED PROTECTION Your small to medium businesses clients have access to RSA s risk control specialists experts in the field with years of experience at no extra cost. By identifying potential risks and providing recommendations for improved safety - including assistance with implementation of a formal safety program - our industryleading Risk Control Services give entrepreneurs the benefit of added protection. From business interruption to slips, trips and falls - we provide you and your customers with a range of risk prevention tools and guides covering a variety of perils, along with customer-specific tips and checklists. This value-added service gives your clients the ability to reduce risk in their business. 21

24 WE RE BIG ON your BUSINESS Everyday, Canadian men and women, of every age and background, are driven to take hold of the limitless possibilities that come with being an entrepreneur. We re there with you to help these industrious individuals turn their dreams into reality, grow, and nurture their business with the right insurance partner. Given our expertise in Commercial Insurance, you can count on RSA to meet the needs of your small to medium business clients, and enable your business to grow. As a broker, your success is our success. Work with RSA to tap into the incredible business opportunity offered by small to medium businesses: we are the insurance partner that truly understands their business. We re highly invested in this market, and we d like you to join us. 22

25 we re big on your business IF YOU RE BIG ON BUSINESS, PARTNER WITH RSA. 23

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27 2012. RSA is a registered trade name of Royal & Sun Alliance Insurance Company of Canada. RSA and the RSA logo are trademarks used under license from RSA Insurance Group plc RSA Group includes, but is not limited to, RSA Insurance Group plc and it s subsidiaries and affiliates including Royal & Sun Alliance Insurance Company of Canada. The information in this document is intended for informational purposes only. It contains some information about coverages and services offered by RSA but does not list all the conditions and exclusions which apply to described coverages and services. The actual wording of the policy and local law govern all situations. * To a maximum of 15 reward miles/month. All AIR MILES offers are subject to the Terms and Conditions of RSA, and may be changed or withdrawn without notice. Terms and Conditions can be found at Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Roins Financial Services Limited (03/2012) 24

28 If you re big on business, partner with RSA.